Korean Car Distributor Granted Regulatory Approval

Korean automobile distributor Hyundai Asia Resources, Inc. (HARI) received regulatory approval on Wednesday to hike its capital fourfold to P1 billion.

British Virgin Islands firm Kibo Holdings Ltd., which owns half of HARI, increased its stake in the company by subscribing to the entire stock increase but paid for only P200 million, documents from the Securities and Exchange Commission (SEC) showed.

The SEC also approved HARI’s ammendment articles of incorporation that shifted its primary purpose to being an automobile manufacturer and assembler from only a distributor. The firm’s board approved the capital hike and the ammendments to its incorporation on Sept. 30.

In a telephone interview, HARI Corporate Secretary Eduardo L. De Jesus declined to provide details about the company’s ammendment of its primary purpose or its plans for the proceeds from the capital, saying he was not at liberty to discuss these.

Earlier this month, South Korean diplomats said several of their large local companies including Hyundai Motor Company, which is looking to build a $1 billion car plant, were eyeing the Philippines for manufacturing facilities. The officals, however, said high power costs and foreign ownership restrictions discouraged more investments.

Mr. De Jesus would not say whether the HARI’s moves were connected to Hyundai’s plans.

HARI is the official distributor of Hyundai vehicles in the Philippines. It has 32 distributorships in the country, according to its Web site.

by Don Gil K. Carreon, Business World Online

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